New Consolidated JV to build Bahamas UF/RO plant

Seawater desalination water company Consolidated Water Co Ltd, based in the Cayman Islands,
announced 23 May 2012 that it has formed a joint venture (JV) with The New Providence
Development Company Limited (NPDC) in Nassau, Bahamas.

This JV will own and operate a retail water utility that will provide potable water to some of the
most prestigious areas in the Bahamas, including Lyford Cay and Old Fort Bay. Its contract will
include a new ultrafiltration (UF)/reverse osmosis (RO) plant.

Consolidated has agreed to purchase 50% of the ownership in the JV for
Bah$ 7 million (US$ 7 million). NPDC is transferring its existing retail
water utility business, which presently provides water to approximately 1,000 customers, to the
JV for its 50% ownership.

The JV will operate pursuant to a 25-year exclusive water utility franchise granted by
the Bahamas government for the western end of New Providence Island.

"We are pleased to have the opportunity with this JV to add a Bahamian retail water
utility to our operations," commented Rick McTaggart, Consolidated's CEO. "The expertise we
have acquired operating a retail water utility in Grand Cayman for more than 38 years,
combined with NPDC's operating experience in the Bahamas, which began the mid-1960s, will
enable the JV to provide customers on the western end of New Providence Island with a world-
class water supply."

NPDC is transferring a business to the JV that currently collects groundwater from
approximately 1,700 acres (690 ha) of land, treats that groundwater and distributes
potable water to its customers. The JV will have a license to continue collecting this water for the
term of the 25-year franchise.

Consolidated will be contracted to provide management and engineering services for
the JV, including the construction of a new water treatment plant that incorporates UF and
brackish-water and seawater RO technologies. Construction of the plant should be completed by
the end of 2012.

"We expect to close this transaction on or before June 30, 2012, after which we will
commence construction of the new plant improvements," concluded McTaggart.